Background on Key Figures and Institutions
The Mexican peso experienced a rebound in mid-week trading after three consecutive days of losses against the US dollar. This recovery occurred as markets absorbed unchanged producer price data from the United States for June.
The Bank of Mexico (Banxico) provides official data, which showed the Mexican peso gained 9.14 cents compared to yesterday’s record of 18.8188 units. This equates to a 0.49% increase.
The US dollar fluctuated between a high of 18.8484 units and a low of 18.6833 units. The Intercontinental Exchange’s Dollar Index (DXY) fell 0.35% to 98.29 points, comparing the US currency to six reference currencies.
Influencing Factors: Producer Price Index and Fed Expectations
Monex Grupo Financiero stated, “Today, the Mexican peso is favored by a slight technical correction following yesterday’s session weakness, along with an upward external impulse after evaluating the US producer inflation report.”
The US Producer Price Index (PPI) remained unchanged in June compared to the previous month, surpassing analysts’ consensus forecast of a 0.2% monthly growth. This followed May’s 0.3% increase.
Although the Federal Reserve has signaled potential interest rate cuts this year, recent consumer price data released yesterday maintained expectations of stability at least until September.
Market Volatility and Donald Trump Speculation
The session was marked by volatility after rumors circulated that US President Donald Trump might soon dismiss Federal Reserve Chair Jerome Powell, which were later denied.
Grupo Financiero Banorte expressed optimism, stating, “We believe the peso’s recovery will continue.” Banco Base added in a note, “From a technical perspective, the peso has consolidated below the psychological level of 19 units per dollar.”
Key Questions and Answers
- What led to the Mexican peso’s recovery? The peso gained after three consecutive days of losses due to a slight technical correction and an upward external impulse following the evaluation of the US producer inflation report.
- What was the US Producer Price Index (PPI) data for June? The PPI remained unchanged in June compared to the previous month, surpassing analysts’ expectations of a 0.2% monthly growth.
- How did recent US consumer price data impact Fed expectations? The recent consumer price data maintained expectations of interest rate stability at least until September.
- What caused market volatility during the session? Market volatility arose from rumors that US President Donald Trump might soon dismiss Federal Reserve Chair Jerome Powell, which were later denied.
